parts and their functions, answers questions, and then they all troop
away to the engine rooms to see a great pump. The school has a regular
factory workshop with the finest equipment. The boys work up from one
machine to the next. They work solely on parts or articles needed by the
company, but our needs are so vast that this list comprehends nearly
everything. The inspected work is purchased by the Ford Motor Company,
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and, of course, the work that does not pass inspection is a loss to the
school.
The boys who have progressed furthest do fine micrometer work, and they
do every operation with a clear understanding of the purposes and
principles involved. They repair their own machines; they learn how to
take care of themselves around machinery; they study pattern-making and
in clean, well-lighted rooms with their instructors they lay the
foundation for successful careers.
When they graduate, places are always open for them in the shops at good
wages. The social and moral well-being of the boys is given an
unobtrusive care. The supervision is not of authority but of friendly
interest. The home conditions of every boy are pretty well known, and
his tendencies are observed. And no attempt is made to coddle him. No
attempt is made to render him namby-pamby. One day when two boys came to
the point of a fight, they were not lectured on the wickedness of
fighting. They were counseled to make up their differences in a better
way, but when, boy-like, they preferred the more primitive mode of
settlement, they were given gloves and made to fight it out in a corner
of the shop. The only prohibition laid upon them was that they were to
finish it there, and not to be caught fighting outside the shop. The
result was a short encounter and–friendship.
They are handled as boys; their better boyish instincts are encouraged;
and when one sees them in the shops and classes one cannot easily miss
the light of dawning mastery in their eyes. They have a sense of
”belonging.” They feel they are doing something worth while. They learn
readily and eagerly because they are learning the things which every
active boy wants to learn and about which he is constantly asking
questions that none of his home-folks can answer.
Beginning with six boys the school now has two hundred and is possessed
of so practical a system that it may expand to seven hundred. It began
with a deficit, but as it is one of my basic ideas that anything worth
while in itself can be made self-sustaining, it has so developed its
processes that it is now paying its way.
We have been able to let the boy have his boyhood. These boys learn to
be workmen but they do not forget how to be boys. That is of the first
importance. They earn from 19 to 35 cents an hour–which is more than
they could earn as boys in the sort of job open to a youngster. They can
better help support their families by staying in school than by going
out to work. When they are through, they have a good general education,
the beginning of a technical education, and they are so skilled as
workmen that they can earn wages which will give them the liberty to
continue their education if they like. If they do not want more
education, they have at least the skill to command high wages anywhere.
They do not have to go into our factories; most of them do because they
do not know where better jobs are to be had–we want all our jobs to be
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good for the men who take them. But there is no string tied to the boys.
They have earned their own way and are under obligations to no one.
There is no charity. The place pays for itself.
The Ford Hospital is being worked out on somewhat similar lines, but
because of the interruption of the war–when it was given to the
Government and became General Hospital No. 36, housing some fifteen
hundred patients–the work has not yet advanced to the point of
absolutely definite results. I did not deliberately set out to build
this hospital. It began in 1914 as the Detroit General Hospital and was
designed to be erected by popular subscription. With others, I made a
subscription, and the building began. Long before the first buildings
were done, the funds became exhausted and I was asked to make another
subscription. I refused because I thought that the managers should have
known how much the building was going to cost before they started. And
that sort of a beginning did not give great confidence as to how the
place would be managed after it was finished. However, I did offer to
take the whole hospital, paying back all the subscriptions that had been
made. This was accomplished, and we were going forward with the work
when, on August 1, 1918, the whole institution was turned over to the
Government. It was returned to us in October, 1919, and on the tenth day
of November of the same year the first private patient was admitted.
The hospital is on West Grand Boulevard in Detroit and the plot embraces
twenty acres, so that there will be ample room for expansion. It is our
thought to extend the facilities as they justify themselves. The
original design of the hospital has been quite abandoned and we have
endeavoured to work out a new kind of hospital, both in design and
management. There are plenty of hospitals for the rich. There are plenty
of hospitals for the poor. There are no hospitals for those who can
afford to pay only a moderate amount and yet desire to pay without a
feeling that they are recipients of charity. It has been taken for
granted that a hospital cannot both serve and be self-supporting–that
it has to be either an institution kept going by private contributions
or pass into the class of private sanitariums managed for profit. This
hospital is designed to be self-supporting–to give a maximum of service
at a minimum of cost and without the slightest colouring of charity.
In the new buildings that we have erected there are no wards. All of the
rooms are private and each one is provided with a bath. The rooms–which
are in groups of twenty-four–are all identical in size, in fittings,
and in furnishings. There is no choice of rooms. It is planned that
there shall be no choice of anything within the hospital. Every patient
is on an equal footing with every other patient.
It is not at all certain whether hospitals as they are now managed exist
for patients or for doctors. I am not unmindful of the large amount of
time which a capable physician or surgeon gives to charity, but also I
am not convinced that the fees of surgeons should be regulated according
to the wealth of the patient, and I am entirely convinced that what is
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known as ”professional etiquette” is a curse to mankind and to the
development of medicine. Diagnosis is not very much developed. I should
not care to be among the proprietors of a hospital in which every step
had not been taken to insure that the patients were being treated for
what actually was the matter with them, instead of for something that
one doctor had decided they had. Professional etiquette makes it very
difficult for a wrong diagnosis to be corrected. The consulting
physician, unless he be a man of great tact, will not change a diagnosis
or a treatment unless the physician who has called him in is in thorough
agreement, and then if a change be made, it is usually without the
knowledge of the patient. There seems to be a notion that a patient, and
especially when in a hospital, becomes the property of the doctor. A
conscientious practitioner does not exploit the patient. A less
conscientious one does. Many physicians seem to regard the sustaining of
their own diagnoses as of as great moment as the recovery of the
patient.
It has been an aim of our hospital to cut away from all of these
practices and to put the interest of the patient first. Therefore, it is
what is known as a ”closed” hospital. All of the physicians and all of
the nurses are employed by the year and they can have no practice
outside of the hospital. Including the interns, twenty-one physicians
and surgeons are on the staff. These men have been selected with great
care and they are paid salaries that amount to at least as much as they
would ordinarily earn in successful private practice. They have, none of
them, any financial interest whatsoever in any patient, and a patient
may not be treated by a doctor from the outside. We gladly acknowledge
the place and the use of the family physician. We do not seek to
supplant him. We take the case where he leaves off, and return the
patient as quickly as possible. Our system makes it undesirable for us
to keep patients longer than necessary–we do not need that kind of
business. And we will share with the family physician our knowledge of
the case, but while the patient is in the hospital we assume full
responsibility. It is ”closed” to outside physicians’ practice, though
it is not closed to our cooperation with any family physician who
desires it.
The admission of a patient is interesting. The incoming patient is first
examined by the senior physician and then is routed for examination
through three, four, or whatever number of doctors seems necessary. This
routing takes place regardless of what the patient came to the hospital
for, because, as we are gradually learning, it is the complete health
rather than a single ailment which is important. Each of the doctors
makes a complete examination, and each sends in his written findings to
the head physician without any opportunity whatsoever to consult with
any of the other examining physicians. At least three, and sometimes six
or seven, absolutely complete and absolutely independent diagnoses are
thus in the hands of the head of the hospital. They constitute a
complete record of the case. These precautions are taken in order to
insure, within the limits of present-day knowledge, a correct diagnosis.
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At the present time, there are about six hundred beds available. Every
patient pays according to a fixed schedule that includes the hospital
room, board, medical and surgical attendance, and nursing. There are no
extras. There are no private nurses. If a case requires more attention
than the nurses assigned to the wing can give, then another nurse is put
on, but without any additional expense to the patient. This, however, is
rarely necessary because the patients are grouped according to the
amount of nursing that they will need. There may be one nurse for two
patients, or one nurse for five patients, as the type of cases may
require. No one nurse ever has more than seven patients to care for, and
because of the arrangements it is easily possible for a nurse to care
for seven patients who are not desperately ill. In the ordinary hospital
the nurses must make many useless steps. More of their time is spent in
walking than in caring for the patient. This hospital is designed to
save steps. Each floor is complete in itself, and just as in the
factories we have tried to eliminate the necessity for waste motion, so
have we also tried to eliminate waste motion in the hospital. The charge
to patients for a room, nursing, and medical attendance is $4.50 a day.
This will be lowered as the size of the hospital increases. The charge
for a major operation is $125. The charge for minor operations is
according to a fixed scale. All of the charges are tentative. The
hospital has a cost system just like a factory. The charges will be
regulated to make ends just meet.
There seems to be no good reason why the experiment should not be
successful. Its success is purely a matter of management and
mathematics. The same kind of management which permits a factory to give
the fullest service will permit a hospital to give the fullest service,
and at a price so low as to be within the reach of everyone. The only
difference between hospital and factory accounting is that I do not
expect the hospital to return a profit; we do expect it to cover
depreciation. The investment in this hospital to date is about
$9,000,000.
If we can get away from charity, the funds that now go into charitable
enterprises can be turned to furthering production–to making goods
cheaply and in great plenty. And then we shall not only be removing the
burden of taxes from the community and freeing men but also we can be
adding to the general wealth. We leave for private interest too many
things we ought to do for ourselves as a collective interest. We need
more constructive thinking in public service. We need a kind of
”universal training” in economic facts. The over-reaching ambitions of
speculative capital, as well as the unreasonable demands of
irresponsible labour, are due to ignorance of the economic basis of
life. Nobody can get more out of life than life can produce–yet nearly
everybody thinks he can. Speculative capital wants more; labour wants
more; the source of raw material wants more; and the purchasing public
wants more. A family knows that it cannot live beyond its income; even
the children know that. But the public never seems to learn that it
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cannot live beyond its income–have more than it produces.
In clearing out the need for charity we must keep in mind not only the
economic facts of existence, but also that lack of knowledge of these
facts encourages fear. Banish fear and we can have self-reliance.
Charity is not present where self-reliance dwells.
Fear is the offspring of a reliance placed on something outside–on a
foreman’s good-will, perhaps, on a shop’s prosperity, on a market’s
steadiness. That is just another way of saying that fear is the portion
of the man who acknowledges his career to be in the keeping of earthly
circumstances. Fear is the result of the body assuming ascendancy over
the soul.
The habit of failure is purely mental and is the mother of fear. This
habit gets itself fixed on men because they lack vision. They start out
to do something that reaches from A to Z. At A they fail, at B they
stumble, and at C they meet with what seems to be an insuperable
difficulty. They then cry ”Beaten” and throw the whole task down. They
have not even given themselves a chance really to fail; they have not
given their vision a chance to be proved or disproved. They have simply
let themselves be beaten by the natural difficulties that attend every
kind of effort.
More men are beaten than fail. It is not wisdom they need or money, or
brilliance, or ”pull,” but just plain gristle and bone. This rude,
simple, primitive power which we call ”stick-to-it-iveness” is the
uncrowned king of the world of endeavour. People are utterly wrong in
their slant upon things. They see the successes that men have made and
somehow they appear to be easy. But that is a world away from the facts.
It is failure that is easy. Success is always hard. A man can fail in
ease; he can succeed only by paying out all that he has and is. It is
this which makes success so pitiable a thing if it be in lines that are
not useful and uplifting.
If a man is in constant fear of the industrial situation he ought to
change his life so as not to be dependent upon it. There is always the
land, and fewer people are on the land now than ever before. If a man
lives in fear of an employer’s favor changing toward him, he ought to
extricate himself from dependence on any employer. He can become his own
boss. It may be that he will be a poorer boss than the one he leaves,
and that his returns will be much less, but at least he will have rid
himself of the shadow of his pet fear, and that is worth a great deal in
money and position. Better still is for the man to come through himself
and exceed himself by getting rid of his fears in the midst of the
circumstances where his daily lot is cast. Become a freeman in the place
where you first surrendered your freedom. Win your battle where you lost
it. And you will come to see that, although there was much outside of
you that was not right, there was more inside of you that was not right.
Thus you will learn that the wrong inside of you spoils even the right
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that is outside of you.
A man is still the superior being of the earth. Whatever happens, he is
still a man. Business may slacken tomorrow–he is still a man. He goes
through the changes of circumstances, as he goes through the variations
of temperature–still a man. If he can only get this thought reborn in
him, it opens new wells and mines in his own being. There is no security
outside of himself. There is no wealth outside of himself. The
elimination of fear is the bringing in of security and supply.
Let every American become steeled against coddling. Americans ought to
resent coddling. It is a drug. Stand up and stand out; let weaklings
take charity.
CHAPTER XVI
THE RAILROADS
Nothing in this country furnishes a better example of how a business may
be turned from its function of service than do the railroads. We have a
railroad problem, and much learned thought and discussion have been
devoted to the solution of that problem. Everyone is dissatisfied with
the railways. The public is dissatisfied because both the passenger and
freight rates are too high. The railroad employees are dissatisfied
because they say their wages are too low and their hours too long. The
owners of the railways are dissatisfied because it is claimed that no
adequate return is realized upon the money invested. All of the contacts
of a properly managed undertaking ought to be satisfactory. If the
public, the employees, and the owners do not find themselves better off
because of the undertaking, then there must be something very wrong
indeed with the manner in which the undertaking is carried through.
I am entirely without any disposition to pose as a railroad authority.
There may be railroad authorities, but if the service as rendered by the
American railroad to-day is the result of accumulated railway knowledge,
then I cannot say that my respect for the usefulness of that knowledge
is at all profound. I have not the slightest doubt in the world that the
active managers of the railways, the men who really do the work, are
entirely capable of conducting the railways of the country to the
satisfaction of every one, and I have equally no doubt that these active
managers have, by force of a chain of circumstances, all but ceased to
manage. And right there is the source of most of the trouble. The men
who know railroading have not been allowed to manage railroads.
In a previous chapter on finance were set forth the dangers attendant
upon the indiscriminate borrowing of money. It is inevitable that any
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one who can borrow freely to cover errors of management will borrow
rather than correct the errors. Our railway managers have been
practically forced to borrow, for since the very inception of the
railways they have not been free agents. The guiding hand of the railway
has been, not the railroad man, but the banker. When railroad credit was
high, more money was to be made out of floating bond issues and
speculating in the securities than out of service to the public. A very
small fraction of the money earned by the railways has gone back into
the rehabilitation of the properties. When by skilled management the net
revenue became large enough to pay a considerable dividend upon the
stock, then that dividend was used first by the speculators on the
inside and controlling the railroad fiscal policy to boom the stock and
unload their holdings, and then to float a bond issue on the strength of
the credit gained through the earnings. When the earnings dropped or
were artificially depressed, then the speculators bought back the stock
and in the course of time staged another advance and unloading. There is
scarcely a railroad in the United States that has not been through one
or more receiverships, due to the fact that the financial interests
piled on load after load of securities until the structures grew
topheavy and fell over. Then they got in on the receiverships, made
money at the expense of gullible security holders, and started the same
old pyramiding game all over again.
The natural ally of the banker is the lawyer. Such games as have been
played on the railroads have needed expert legal advice. Lawyers, like
bankers, know absolutely nothing about business. They imagine that a
business is properly conducted if it keeps within the law or if the law
can be altered or interpreted to suit the purpose in hand. They live on
rules. The bankers took finance out of the hands of the managers. They
put in lawyers to see that the railroads violated the law only in legal
fashion, and thus grew up immense legal departments. Instead of
operating under the rules of common sense and according to
circumstances, every railroad had to operate on the advice of counsel.
Rules spread through every part of the organization. Then came the
avalanche of state and federal regulations, until to-day we find the
railways hog-tied in a mass of rules and regulations. With the lawyers
and the financiers on the inside and various state commissions on the
outside, the railway manager has little chance. That is the trouble with
the railways. Business cannot be conducted by law.
We have had the opportunity of demonstrating to ourselves what a freedom
from the banker-legal mortmain means, in our experience with the
Detroit, Toledo & Ironton Railway. We bought the railway because its
right of way interfered with some of our improvements on the River
Rouge. We did not buy it as an investment, or as an adjunct to our
industries, or because of its strategic position. The extraordinarily
good situation of the railway seems to have become universally apparent
only since we bought it. That, however, is beside the point. We bought
the railway because it interfered with our plans. Then we had to do
something with it. The only thing to do was to run it as a productive
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enterprise, applying to it exactly the same principles as are applied in
every department of our industries. We have as yet made no special
efforts of any kind and the railway has not been set up as a
demonstration of how every railway should be run. It is true that
applying the rule of maximum service at minimum cost has caused the
income of the road to exceed the outgo–which, for that road, represents
a most unusual condition. It has been represented that the changes we
have made–and remember they have been made simply as part of the day’s
work–are peculiarly revolutionary and quite without application to
railway management in general. Personally, it would seem to me that our
little line does not differ much from the big lines. In our own work we
have always found that, if our principles were right, the area over
which they were applied did not matter. The principles that we use in
the big Highland Park plant seem to work equally well in every plant
that we establish. It has never made any difference with us whether we
multiplied what we were doing by five or five hundred. Size is only a
matter of the multiplication table, anyway.
The Detroit, Toledo & Ironton Railway was organized some twenty-odd
years ago and has been reorganized every few years since then. The last
reorganization was in 1914. The war and the federal control of the
railways interrupted the cycle of reorganization. The road owns 343
miles of track, has 52 miles of branches, and 45 miles of trackage
rights over other roads. It goes from Detroit almost due south to
Ironton on the Ohio River, thus tapping the West Virginia coal deposits.
It crosses most of the large trunk lines and it is a road which, from a
general business standpoint, ought to pay. It has paid. It seems to have
paid the bankers. In 1913 the net capitalization per mile of road was
$105,000. In the next receivership this was cut down to $47,000 per
mile. I do not know how much money in all has been raised on the
strength of the road. I do know that in the reorganization of 1914 the
bondholders were assessed and forced to turn into the treasury nearly
five million dollars–which is the amount that we paid for the entire
road. We paid sixty cents on the dollar for the outstanding mortgage
bonds, although the ruling price just before the time of purchase was
between thirty and forty cents on the dollar. We paid a dollar a share
for the common stock and five dollars a share for the preferred
stock–which seemed to be a fair price considering that no interest had
ever been paid upon the bonds and a dividend on the stock was a most
remote possibility. The rolling stock of the road consisted of about
seventy locomotives, twenty-seven passenger cars, and around
twenty-eight hundred freight cars. All of the rolling stock was in
extremely bad condition and a good part of it would not run at all. All
of the buildings were dirty, unpainted, and generally run down. The
roadbed was something more than a streak of rust and something less than
a railway. The repair shops were over-manned and under-machined.
Practically everything connected with operation was conducted with a
maximum of waste. There was, however, an exceedingly ample executive and
administration department, and of course a legal department. The legal
department alone cost in one month nearly $18,000.
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We took over the road in March, 1921. We began to apply industrial
principles. There had been an executive office in Detroit. We closed
that up and put the administration into the charge of one man and gave
him half of the flat-topped desk out in the freight office. The legal
department went with the executive offices. There is no reason for so
much litigation in connection with railroading. Our people quickly
settled all the mass of outstanding claims, some of which had been
hanging on for years. As new claims arise, they are settled at once and
on the facts, so that the legal expense seldom exceeds $200 a month. All
of the unnecessary accounting and red tape were thrown out and the
payroll of the road was reduced from 2,700 to 1,650 men. Following our
general policy, all titles and offices other than those required by law
were abolished. The ordinary railway organization is rigid; a message
has to go up through a certain line of authority and no man is expected
to do anything without explicit orders from his superior. One morning I
went out to the road very early and found a wrecking train with steam
up, a crew aboard and all ready to start. It had been ”awaiting orders”
for half an hour. We went down and cleared the wreck before the orders
came through; that was before the idea of personal responsibility had
soaked in. It was a little hard to break the ”orders” habit; the men at
first were afraid to take responsibility. But as we went on, they seemed
to like the plan more and more and now no man limits his duties. A man
is paid for a day’s work of eight hours and he is expected to work
during those eight hours. If he is an engineer and finishes a run in
four hours then he works at whatever else may be in demand for the next
four hours. If a man works more than eight hours he is not paid for
overtime–he deducts his overtime from the next working day or saves it
up and gets a whole day off with pay. Our eight-hour day is a day of
eight hours and not a basis for computing pay.
The minimum wage is six dollars a day. There are no extra men. We have
cut down in the offices, in the shops, and on the roads. In one shop 20
men are now doing more work than 59 did before. Not long ago one of our
track gangs, consisting of a foreman and 15 men, was working beside a
parallel road on which was a gang of 40 men doing exactly the same sort
of track repairing and ballasting. In five days our gang did two
telegraph poles more than the competing gang!
The road is being rehabilitated; nearly the whole track has been
reballasted and many miles of new rails have been laid. The locomotives
and rolling stock are being overhauled in our own shops and at a very
slight expense. We found that the supplies bought previously were of
poor quality or unfitted for the use; we are saving money on supplies by
buying better qualities and seeing that nothing is wasted. The men seem
entirely willing to cooperate in saving. They do not discard that which
might be used. We ask a man, ”What can you get out of an engine?” and he
answers with an economy record. And we are not pouring in great amounts
of money. Everything is being done out of earnings. That is our policy.
The trains must go through and on time. The time of freight movements
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has been cut down about two thirds. A car on a siding is not just a car
on a siding. It is a great big question mark. Someone has to know why it
is there. It used to take 8 or 9 days to get freight through to
Philadelphia or New York; now it takes three and a half days. The
organization is serving.
All sorts of explanations are put forward, of why a deficit was turned
into a surplus. I am told that it is all due to diverting the freight of
the Ford industries. If we had diverted all of our business to this
road, that would not explain why we manage at so much lower an operating
cost than before. We are routing as much as we can of our own business
over the road, but only because we there get the best service. For years
past we had been trying to send freight over this road because it was
conveniently located, but we had never been able to use it to any extent
because of the delayed deliveries. We could not count on a shipment to
within five or six weeks; that tied up too much money and also broke
into our production schedule. There was no reason why the road should
not have had a schedule; but it did not. The delays became legal matters
to be taken up in due legal course; that is not the way of business. We
think that a delay is a criticism of our work and is something at once
to be investigated. That is business.
The railroads in general have broken down, and if the former conduct of
the Detroit, Toledo & Ironton is any criterion of management in general
there is no reason in the world why they should not have broken down.
Too many railroads are run, not from the offices of practical men, but
from banking offices, and the principles of procedure, the whole
outlook, are financial–not transportational, but financial. There has
been a breakdown simply because more attention has been paid to
railroads as factors in the stock market than as servants of the people.
Outworn ideas have been retained, development has been practically
stopped, and railroad men with vision have not been set free to grow.
Will a billion dollars solve that sort of trouble? No, a billion dollars
will only make the difficulty one billion dollars worse. The purpose of
the billion is simply to continue the present methods of railroad
management, and it is because of the present methods that we have any
railroad difficulties at all.
The mistaken and foolish things we did years ago are just overtaking us.
At the beginning of railway transportation in the United States, the
people had to be taught its use, just as they had to be taught the use
of the telephone. Also, the new railroads had to make business in order
to keep themselves solvent. And because railway financing began in one
of the rottenest periods of our business history, a number of practices
were established as precedents which have influenced railway work ever
since. One of the first things the railways did was to throttle all
other methods of transportation. There was the beginning of a splendid
canal system in this country and a great movement for canalization was
at its height. The railroad companies bought out the canal companies and
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let the canals fill up and choke with weeds and refuse. All over the
Eastern and in parts of the Middle Western states are the remains of
this network of internal waterways. They are being restored now as
rapidly as possible; they are being linked together; various
commissions, public and private, have seen the vision of a complete
system of waterways serving all parts of the country, and thanks to
their efforts, persistence, and faith, progress is being made.
But there was another. This was the system of making the haul as long as
possible. Any one who is familiar with the exposures which resulted in
the formation of the Interstate Commerce Commission knows what is meant
by this. There was a period when rail transport was not regarded as the
servant of the traveling, manufacturing, and commercial publics.
Business was treated as if it existed for the benefit of the railways.
During this period of folly, it was not good railroading to get goods
from their shipping point to their destination by the most direct line
possible, but to keep them on the road as long as possible, send them
around the longest way, give as many connecting lines as possible a
piece of the profit, and let the public stand the resulting loss of time
and money. That was once counted good railroading. It has not entirely
passed out of practice to-day.
One of the great changes in our economic life to which this railroad
policy contributed was the centralization of certain activities, not
because centralization was necessary, nor because it contributed to the
well-being of the people, but because, among other things, it made
double business for the railroads. Take two staples–meat and grain. If
you look at the maps which the packing houses put out, and see where the
cattle are drawn from; and then if you consider that the cattle, when
converted into food, are hauled again by the same railways right back to
the place where they came from, you will get some sidelight on the
transportation problem and the price of meat. Take also grain. Every
reader of advertisements knows where the great flour mills of the
country are located. And they probably know also that these great mills
are not located in the sections where the grain of the United States is
raised. There are staggering quantities of grain, thousands of
trainloads, hauled uselessly long distances, and then in the form of
flour hauled back again long distances to the states and sections where
the grain was raised–a burdening of the railroads which is of no
benefit to the communities where the grain originated, nor to any one
else except the monopolistic mills and the railroads. The railroads can
always do a big business without helping the business of the country at
all; they can always be engaged in just such useless hauling. On meat
and grain and perhaps on cotton, too, the transportation burden could be
reduced by more than half, by the preparation of the product for use
before it is shipped. If a coal community mined coal in Pennsylvania,
and then sent it by railway to Michigan or Wisconsin to be screened, and
then hauled it back again to Pennsylvania for use, it would not be much
sillier than the hauling of Texas beef alive to Chicago, there to be
killed, and then shipped back dead to Texas; or the hauling of Kansas
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grain to Minnesota, there to be ground in the mills and hauled back
again as flour. It is good business for the railroads, but it is bad
business for business. One angle of the transportation problem to which
too few men are paying attention is this useless hauling of material. If
the problem were tackled from the point of ridding the railroads of
their useless hauls, we might discover that we are in better shape than
we think to take care of the legitimate transportation business of the
country. In commodities like coal it is necessary that they be hauled
from where they are to where they are needed. The same is true of the
raw materials of industry–they must be hauled from the place where
nature has stored them to the place where there are people ready to work
them. And as these raw materials are not often found assembled in one
section, a considerable amount of transportation to a central assembling
place is necessary. The coal comes from one section, the copper from
another, the iron from another, the wood from another–they must all be
brought together.
But wherever it is possible a policy of decentralization ought to be
adopted. We need, instead of mammoth flour mills, a multitude of smaller
mills distributed through all the sections where grain is grown.
Wherever it is possible, the section that produces the raw material
ought to produce also the finished product. Grain should be ground to
flour where it is grown. A hog-growing country should not export hogs,
but pork, hams, and bacon. The cotton mills ought to be near the cotton
fields. This is not a revolutionary idea. In a sense it is a reactionary
one. It does not suggest anything new; it suggests something that is
very old. This is the way the country did things before we fell into the
habit of carting everything around a few thousand miles and adding the
cartage to the consumer’s bill. Our communities ought to be more
complete in themselves. They ought not to be unnecessarily dependent on
railway transportation. Out of what they produce they should supply
their own needs and ship the surplus. And how can they do this unless
they have the means of taking their raw materials, like grain and
cattle, and changing them into finished products? If private enterprise
does not yield these means, the cooperation of farmers can. The chief
injustice sustained by the farmer to-day is that, being the greatest
producer, he is prevented from being also the greatest merchandiser,
because he is compelled to sell to those who put his products into
merchantable form. If he could change his grain into flour, his cattle
into beef, and his hogs into hams and bacon, not only would he receive
the fuller profit of his product, but he would render his near-by
communities more independent of railway exigencies, and thereby improve
the transportation system by relieving it of the burden of his
unfinished product. The thing is not only reasonable and practicable,
but it is becoming absolutely necessary. More than that, it is being
done in many places. But it will not register its full effect on the
transportation situation and upon the cost of living until it is done
more widely and in more kinds of materials.
It is one of nature’s compensations to withdraw prosperity from the
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business which does not serve.
We have found that on the Detroit, Toledo & Ironton we could, following
our universal policy, reduce our rates and get more business. We made
some cuts, but the Interstate Commerce Commission refused to allow them!
Under such conditions why discuss the railroads as a business? Or as a
service?
CHAPTER XVII
THINGS IN GENERAL
No man exceeds Thomas A. Edison in broad vision and understanding. I
met
him first many years ago when I was with the Detroit Edison
Company–probably about 1887 or thereabouts. The electrical men held a
convention at Atlantic City, and Edison, as the leader in electrical
science, made an address. I was then working on my gasoline engine, and
most people, including all of my associates in the electrical company,
had taken pains to tell me that time spent on a gasoline engine was time
wasted–that the power of the future was to be electricity. These
criticisms had not made any impression on me. I was working ahead with
all my might. But being in the same room with Edison suggested to me
that it would be a good idea to find out if the master of electricity
thought it was going to be the only power in the future. So, after Mr.
Edison had finished his address, I managed to catch him alone for a
moment. I told him what I was working on.
At once he was interested. He is interested in every search for new
knowledge. And then I asked him if he thought that there was a future
for the internal combustion engine. He answered something in this
fashion:
Yes, there is a big future for any light-weight engine that can develop
a high horsepower and be self-contained. No one kind of motive power is
ever going to do all the work of the country. We do not know what
electricity can do, but I take for granted that it cannot do everything.
Keep on with your engine. If you can get what you are after, I can see a
great future.
That is characteristic of Edison. He was the central figure in the
electrical industry, which was then young and enthusiastic. The rank and
file of the electrical men could see nothing ahead but electricity, but
their leader could see with crystal clearness that no one power could do
all the work of the country. I suppose that is why he was the leader.
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Such was my first meeting with Edison. I did not see him again until
many years after–until our motor had been developed and was in
production. He remembered perfectly our first meeting. Since then we
have seen each other often. He is one of my closest friends, and we
together have swapped many an idea.
His knowledge is almost universal. He is interested in every conceivable
subject and he recognizes no limitations. He believes that all things
are possible. At the same time he keeps his feet on the ground. He goes
forward step by step. He regards ”impossible” as a description for that
which we have not at the moment the knowledge to achieve. He knows that
as we amass knowledge we build the power to overcome the impossible.
That is the rational way of doing the ”impossible.” The irrational way
is to make the attempt without the toil of accumulating knowledge. Mr.
Edison is only approaching the height of his power. He is the man who is
going to show us what chemistry really can do. For he is a real
scientist who regards the knowledge for which he is always searching as
a tool to shape the progress of the world. He is not the type of
scientist who merely stores up knowledge and turns his head into a
museum. Edison is easily the world’s greatest scientist. I am not sure
that he is not also the world’s worst business man. He knows almost
nothing of business.
John Burroughs was another of those who honoured me with their
friendship. I, too, like birds. I like the outdoors. I like to walk
across country and jump fences. We have five hundred bird houses on the
farm. We call them our bird hotels, and one of them, the Hotel
Pontchartrain–a martin house–has seventy-six apartments. All winter
long we have wire baskets of food hanging about on the trees and then
there is a big basin in which the water is kept from freezing by an
electric heater. Summer and winter, food, drink, and shelter are on hand
for the birds. We have hatched pheasants and quail in incubators and
then turned them over to electric brooders. We have all kinds of bird
houses and nests. The sparrows, who are great abusers of hospitality,
insist that their nests be immovable–that they do not sway in the wind;
the wrens like swaying nests. So we mounted a number of wren boxes on
strips of spring steel so that they would sway in the wind. The wrens
liked the idea and the sparrows did not, so we have been able to have
the wrens nest in peace. In summer we leave cherries on the trees and
strawberries open in the beds, and I think that we have not only more
but also more different kinds of bird callers than anywhere else in the
northern states. John Burroughs said he thought we had, and one day when
he was staying at our place he came across a bird that he had never seen
before.
About ten years ago we imported a great number of birds from
abroad–yellow-hammers, chaffinches, green finches, red pales, twites,
bullfinches, jays, linnets, larks–some five hundred of them. They
stayed around a while, but where they are now I do not know. I shall not
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import any more. Birds are entitled to live where they want to live.
Birds are the best of companions. We need them for their beauty and
their companionship, and also we need them for the strictly economic
reason that they destroy harmful insects. The only time I ever used the
Ford organization to influence legislation was on behalf of the birds,
and I think the end justified the means. The Weeks-McLean Bird Bill,
providing for bird sanctuaries for our migratory birds, had been hanging
in Congress with every likelihood of dying a natural death. Its
immediate sponsors could not arouse much interest among the Congressmen.
Birds do not vote. We got behind that bill and we asked each of our six
thousand dealers to wire to his representative in Congress. It began to
become apparent that birds might have votes; the bill went through. Our
organization has never been used for any political purpose and never
will be. We assume that our people have a right to their own
preferences.
To get back to John Burroughs. Of course I knew who he was and I had
read nearly everything he had written, but I had never thought of
meeting him until some years ago when he developed a grudge against
modern progress. He detested money and especially he detested the power
which money gives to vulgar people to despoil the lovely countryside. He
grew to dislike the industry out of which money is made. He disliked the
noise of factories and railways. He criticized industrial progress, and
he declared that the automobile was going to kill the appreciation of
nature. I fundamentally disagreed with him. I thought that his emotions
had taken him on the wrong tack and so I sent him an automobile with the
request that he try it out and discover for himself whether it would not
help him to know nature better. That automobile–and it took him some
time to learn how to manage it himself–completely changed his point of
view. He found that it helped him to see more, and from the time of
getting it, he made nearly all of his bird-hunting expeditions behind
the steering wheel. He learned that instead of having to confine himself
to a few miles around Slabsides, the whole countryside was open to him.
Out of that automobile grew our friendship, and it was a fine one. No
man could help being the better for knowing John Burroughs. He was not a
professional naturalist, nor did he make sentiment do for hard research.
It is easy to grow sentimental out of doors; it is hard to pursue the
truth about a bird as one would pursue a mechanical principle. But John
Burroughs did that, and as a result the observations he set down were
very largely accurate. He was impatient with men who were not accurate
in their observations of natural life. John Burroughs first loved nature
for its own sake; it was not merely his stock of material as a
professional writer. He loved it before he wrote about it.
Late in life he turned philosopher. His philosophy was not so much a
philosophy of nature as it was a natural philosophy–the long, serene
thoughts of a man who had lived in the tranquil spirit of the trees. He
was not pagan; he was not pantheist; but he did not much divide between
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nature and human nature, nor between human nature and divine. John
Burroughs lived a wholesome life. He was fortunate to have as his home
the farm on which he was born. Through long years his surroundings were
those which made for quietness of mind. He loved the woods and he made
dusty-minded city people love them, too–he helped them see what he saw.
He did not make much beyond a living. He could have done so, perhaps,
but that was not his aim. Like another American naturalist, his
occupation could have been described as inspector of birds’ nests and
hillside paths. Of course, that does not pay in dollars and cents.
When he had passed the three score and ten he changed his views on
industry. Perhaps I had something to do with that. He came to see that
the whole world could not live by hunting birds’ nests. At one time in
his life, he had a grudge against all modern progress, especially where
it was associated with the burning of coal and the noise of traffic.
Perhaps that was as near to literary affectation as he ever came.
Wordsworth disliked railways too, and Thoreau said that he could see
more of the country by walking. Perhaps it was influences such as these
which bent John Burroughs for a time against industrial progress. But
only for a time. He came to see that it was fortunate for him that
others’ tastes ran in other channels, just as it was fortunate for the
world that his taste ran in its own channel. There has been no
observable development in the method of making birds’ nests since the
beginning of recorded observation, but that was hardly a reason why
human beings should not prefer modern sanitary homes to cave dwellings.
This was a part of John Burroughs’s sanity–he was not afraid to change
his views. He was a lover of Nature, not her dupe. In the course of time
he came to value and approve modern devices, and though this by itself
is an interesting fact, it is not so interesting as the fact that he
made this change after he was seventy years old. John Burroughs was
never too old to change. He kept growing to the last. The man who is too
set to change is dead already. The funeral is a mere detail.
If he talked more of one person than another, it was Emerson. Not only
did he know Emerson by heart as an author, but he knew him by heart as a
spirit. He taught me to know Emerson. He had so saturated himself with
Emerson that at one time he thought as he did and even fell into his
mode of expression. But afterward he found his own way–which for him
was better.
There was no sadness in John Burroughs’s death. When the grain lies
brown and ripe under the harvest sun, and the harvesters are busy
binding it into sheaves, there is no sadness for the grain. It has
ripened and has fulfilled its term, and so had John Burroughs. With him
it was full ripeness and harvest, not decay. He worked almost to the
end. His plans ran beyond the end. They buried him amid the scenes he
loved, and it was his eighty-fourth birthday. Those scenes will be
preserved as he loved them.
John Burroughs, Edison, and I with Harvey S. Firestone made several
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vagabond trips together. We went in motor caravans and slept under
canvas. Once we gypsied through the Adirondacks and again through the
Alleghenies, heading southward. The trips were good fun–except that
they began to attract too much attention.
To-day I am more opposed to war than ever I was, and I think the people
of the world know–even if the politicians do not–that war never
settles anything. It was war that made the orderly and profitable
processes of the world what they are to-day–a loose, disjointed mass.
Of course, some men get rich out of war; others get poor. But the men
who get rich are not those who fought or who really helped behind the
lines. No patriot makes money out of war. No man with true patriotism
could make money out of war–out of the sacrifice of other men’s lives.
Until the soldier makes money by fighting, until mothers make money by
giving their sons to death–not until then should any citizen make money
out of providing his country with the means to preserve its life.
If wars are to continue, it will be harder and harder for the upright
business man to regard war as a legitimate means of high and speedy
profits. War fortunes are losing caste every day. Even greed will some
day hesitate before the overwhelming unpopularity and opposition which
will meet the war profiteer. Business should be on the side of peace,
because peace is business’s best asset.
And, by the way, was inventive genius ever so sterile as it was during
the war?
An impartial investigation of the last war, of what preceded it and what
has come out of it, would show beyond a doubt that there is in the world
a group of men with vast powers of control, that prefers to remain
unknown, that does not seek office or any of the tokens of power, that
belongs to no nation whatever but is international–a force that uses
every government, every widespread business organization, every agency
of publicity, every resource of national psychology, to throw the world
into a panic for the sake of getting still more power over the world. An
old gambling trick used to be for the gambler to cry ”Police!” when a
lot of money was on the table, and, in the panic that followed, to seize
the money and run off with it. There is a power within the world which
cries ”War!” and in the confusion of the nations, the unrestrained
sacrifice which people make for safety and peace runs off with the
spoils of the panic.
The point to keep in mind is that, though we won the military contest,
the world has not yet quite succeeded in winning a complete victory over
the promoters of war. We ought not to forget that wars are a purely
manufactured evil and are made according to a definite technique. A
campaign for war is made upon as definite lines as a campaign for any
other purpose. First, the people are worked upon. By clever tales the
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people’s suspicions are aroused toward the nation against whom war is
desired. Make the nation suspicious; make the other nation suspicious.
All you need for this is a few agents with some cleverness and no
conscience and a press whose interest is locked up with the interests
that will be benefited by war. Then the ”overt act” will soon appear. It
is no trick at all to get an ”overt act” once you work the hatred of two
nations up to the proper pitch.
There were men in every country who were glad to see the World War begin
and sorry to see it stop. Hundreds of American fortunes date from the
Civil War; thousands of new fortunes date from the World War. Nobody can
deny that war is a profitable business for those who like that kind of
money. War is an orgy of money, just as it is an orgy of blood.
And we should not so easily be led into war if we considered what it is
that makes a nation really great. It is not the amount of trade that
makes a nation great. The creation of private fortunes, like the
creation of an autocracy, does not make any country great. Nor does the
mere change of an agricultural population into a factory population. A
country becomes great when, by the wise development of its resources and
the skill of its people, property is widely and fairly distributed.
Foreign trade is full of delusions. We ought to wish for every nation as
large a degree of self-support as possible. Instead of wishing to keep
them dependent on us for what we manufacture, we should wish them to
learn to manufacture themselves and build up a solidly founded
civilization. When every nation learns to produce the things which it
can produce, we shall be able to get down to a basis of serving each
other along those special lines in which there can be no competition.
The North Temperate Zone will never be able to compete with the tropics
in the special products of the tropics. Our country will never be a
competitor with the Orient in the production of tea, nor with the South
in the production of rubber.
A large proportion of our foreign trade is based on the backwardness of
our foreign customers. Selfishness is a motive that would preserve that
backwardness. Humanity is a motive that would help the backward nations
to a self-supporting basis. Take Mexico, for example. We have heard a
great deal about the ”development” of Mexico. Exploitation is the word
that ought instead to be used. When its rich natural resources are
exploited for the increase of the private fortunes of foreign
capitalists, that is not development, it is ravishment. You can never
develop Mexico until you develop the Mexican. And yet how much of the
”development” of Mexico by foreign exploiters ever took account of the
development of its people? The Mexican peon has been regarded as mere
fuel for the foreign money-makers. Foreign trade has been his
degradation.
Short-sighted people are afraid of such counsel. They say: ”What would
become of our foreign trade?”
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When the natives of Africa begin raising their own cotton and the
natives of Russia begin making their own farming implements and the
natives of China begin supplying their own wants, it will make a
difference, to be sure, but does any thoughtful man imagine that the
world can long continue on the present basis of a few nations supplying
the needs of the world? We must think in terms of what the world will be
when civilization becomes general, when all the peoples have learned to
help themselves.
When a country goes mad about foreign trade it usually depends on other
countries for its raw material, turns its population into factory
fodder, creates a private rich class, and lets its own immediate
interest lie neglected. Here in the United States we have enough work to
do developing our own country to relieve us of the necessity of looking
for foreign trade for a long time. We have agriculture enough to feed us
while we are doing it, and money enough to carry the job through. Is
there anything more stupid than the United States standing idle because
Japan or France or any other country has not sent us an order when there
is a hundred-year job awaiting us in developing our own country?
Commerce began in service. Men carried off their surplus to people who
had none. The country that raised corn carried it to the country that
could raise no corn. The lumber country brought wood to the treeless
plain. The vine country brought fruit to cold northern climes. The
pasture country brought meat to the grassless region. It was all
service. When all the peoples of the world become developed in the art
of self-support, commerce will get back to that basis. Business will
once more become service. There will be no competition, because the
basis of competition will have vanished. The varied peoples will develop
skills which will be in the nature of monopolies and not competitive.
From the beginning, the races have exhibited distinct strains of genius:
this one for government; another for colonization; another for the sea;
another for art and music; another for agriculture; another for
business, and so on. Lincoln said that this nation could not survive
half-slave and half-free. The human race cannot forever exist
half-exploiter and half-exploited. Until we become buyers and sellers
alike, producers and consumers alike, keeping the balance not for profit
but for service, we are going to have topsy-turvy conditions.
France has something to give the world of which no competition can cheat
her. So has Italy. So has Russia. So have the countries of South
America. So has Japan. So has Britain. So has the United States. The
sooner we get back to a basis of natural specialties and drop this
free-for-all system of grab, the sooner we shall be sure of
international self-respect–and international peace. Trying to take the
trade of the world can promote war. It cannot promote prosperity. Some
day even the international bankers will learn this.
I have never been able to discover any honourable reasons for the
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beginning of the World War. It seems to have grown out of a very
complicated situation created largely by those who thought they could
profit by war. I believed, on the information that was given to me in
1916, that some of the nations were anxious for peace and would welcome
a demonstration for peace. It was in the hope that this was true that I
financed the expedition to Stockholm in what has since been called the
”Peace Ship.” I do not regret the attempt. The mere fact that it failed
is not, to me, conclusive proof that it was not worth trying. We learn
more from our failures than from our successes. What I learned on that
trip was worth the time and the money expended. I do not now know
whether the information as conveyed to me was true or false. I do not
care. But I think everyone will agree that if it had been possible to
end the war in 1916 the world would be better off than it is to-day.
For the victors wasted themselves in winning, and the vanquished in
resisting. Nobody got an advantage, honourable or dishonourable, out of
that war. I had hoped, finally, when the United States entered the war,
that it might be a war to end wars, but now I know that wars do not end
wars any more than an extraordinarily large conflagration does away with
the fire hazard. When our country entered the war, it became the duty of
every citizen to do his utmost toward seeing through to the end that
which we had undertaken. I believe that it is the duty of the man who
opposes war to oppose going to war up until the time of its actual
declaration. My opposition to war is not based upon pacifist or
non-resistant principles. It may be that the present state of
civilization is such that certain international questions cannot be
discussed; it may be that they have to be fought out. But the fighting
never settles the question. It only gets the participants around to a
frame of mind where they will agree to discuss what they were fighting
about.
Once we were in the war, every facility of the Ford industries was put
at the disposal of the Government. We had, up to the time of the
declaration of war, absolutely refused to take war orders from the
foreign belligerents. It is entirely out of keeping with the principles
of our business to disturb the routine of our production unless in an
emergency. It is at variance with our human principles to aid either
side in a war in which our country was not involved. These principles
had no application, once the United States entered the war. From April,
1917, until November, 1918, our factory worked practically exclusively
for the Government. Of course we made cars and parts and special
delivery trucks and ambulances as a part of our general production, but
we also made many other articles that were more or less new to us. We
made 2 1/2-ton and 6-ton trucks. We made Liberty motors in great
quantities, aero cylinders, 1.55 Mm. and 4.7 Mm. caissons. We made
listening devices, steel helmets (both at Highland Park and
Philadelphia), and Eagle Boats, and we did a large amount of
experimental work on armour plate, compensators, and body armour. For
the Eagle Boats we put up a special plant on the River Rouge site. These
boats were designed to combat the submarines. They were 204 feet long,
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made of steel, and one of the conditions precedent to their building was
that their construction should not interfere with any other line of war
production and also that they be delivered quickly. The design was
worked out by the Navy Department. On December 22, 1917, I offered to
build the boats for the Navy. The discussion terminated on January 15,
1918, when the Navy Department awarded the contract to the Ford Company.
On July 11th, the first completed boat was launched. We made both the
hulls and the engines, and not a forging or a rolled beam entered into
the construction of other than the engine. We stamped the hulls entirely
out of sheet steel. They were built indoors. In four months we ran up a
building at the River Rouge a third of a mile long, 350 feet wide, and
100 feet high, covering more than thirteen acres. These boats were not
built by marine engineers. They were built simply by applying our
production principles to a new product.
With the Armistice, we at once dropped the war and went back to peace.
An able man is a man who can do things, and his ability to do things is
dependent on what he has in him. What he has in him depends on what he
started with and what he has done to increase and discipline it.
An educated man is not one whose memory is trained to carry a few dates
in history–he is one who can accomplish things. A man who cannot think
is not an educated man however many college degrees he may have
acquired. Thinking is the hardest work any one can do–which is
probably the reason why we have so few thinkers. There are two extremes
to be avoided: one is the attitude of contempt toward education, the
other is the tragic snobbery of assuming that marching through an
educational system is a sure cure for ignorance and mediocrity. You
cannot learn in any school what the world is going to do next year, but
you can learn some of the things which the world has tried to do in
former years, and where it failed and where it succeeded. If education
consisted in warning the young student away from some of the false
theories on which men have tried to build, so that he may be saved the
loss of the time in finding out by bitter experience, its good would be
unquestioned. An education which consists of signposts indicating the
failure and the fallacies of the past doubtless would be very useful. It
is not education just to possess the theories of a lot of professors.
Speculation is very interesting, and sometimes profitable, but it is not
education. To be learned in science to-day is merely to be aware of a
hundred theories that have not been proved. And not to know what those
theories are is to be ”uneducated,” ”ignorant,” and so forth. If
knowledge of guesses is learning, then one may become learned by the
simple expedient of making his own guesses. And by the same token he can
dub the rest of the world ”ignorant” because it does not know what his
guesses are. But the best that education can do for a man is to put him
in possession of his powers, give him control of the tools with which
destiny has endowed him, and teach him how to think. The college renders
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its best service as an intellectual gymnasium, in which mental muscle is
developed and the student strengthened to do what he can. To say,
however, that mental gymnastics can be had only in college is not true,
as every educator knows. A man’s real education begins after he has left
school. True education is gained through the discipline of life.
There are many kinds of knowledge, and it depends on what crowd you
happen to be in, or how the fashions of the day happen to run, which
kind of knowledge, is most respected at the moment. There are fashions
in knowledge, just as there are in everything else. When some of us were
lads, knowledge used to be limited to the Bible. There were certain men
in the neighbourhood who knew the Book thoroughly, and they were looked
up to and respected. Biblical knowledge was highly valued then. But
nowadays it is doubtful whether deep acquaintance with the Bible would
be sufficient to win a man a name for learning.
Knowledge, to my mind, is something that in the past somebody knew and
left in a form which enables all who will to obtain it. If a man is born
with normal human faculties, if he is equipped with enough ability to
use the tools which we call ”letters” in reading or writing, there is no
knowledge within the possession of the race that he cannot have–if he
wants it! The only reason why every man does not know everything that
the human mind has ever learned is that no one has ever yet found it
worth while to know that much. Men satisfy their minds more by finding
out things for themselves than by heaping together the things which
somebody else has found out. You can go out and gather knowledge all
your life, and with all your gathering you will not catch up even with
your own times. You may fill your head with all the ”facts” of all the
ages, and your head may be just an overloaded fact-box when you get
through. The point is this: Great piles of knowledge in the head are not
the same as mental activity. A man may be very learned and very useless.
And then again, a man may be unlearned and very useful.
The object of education is not to fill a man’s mind with facts; it is to
teach him how to use his mind in thinking. And it often happens that a
man can think better if he is not hampered by the knowledge of the past.
It is a very human tendency to think that what mankind does not yet know
no one can learn. And yet it must be perfectly clear to everyone that
the past learning of mankind cannot be allowed to hinder our future
learning. Mankind has not gone so very far when you measure its progress
against the knowledge that is yet to be gained–the secrets that are yet
to be learned.
One good way to hinder progress is to fill a man’s head with all the
learning of the past; it makes him feel that because his head is full,
there is nothing more to learn. Merely gathering knowledge may become
the most useless work a man can do. What can you do to help and heal the
world? That is the educational test. If a man can hold up his own end,
he counts for one. If he can help ten or a hundred or a thousand other
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men hold up their ends, he counts for more. He may be quite rusty on
many things that inhabit the realm of print, but he is a learned man
just the same. When a man is master of his own sphere, whatever it may
be, he has won his degree–he has entered the realm of wisdom.
The work which we describe as Studies in the Jewish Question, and which
is variously described by antagonists as ”the Jewish campaign,” ”the
attack on the Jews,” ”the anti-Semitic pogrom,” and so forth, needs no
explanation to those who have followed it. Its motives and purposes must
be judged by the work itself. It is offered as a contribution to a
question which deeply affects the country, a question which is racial at
its source, and which concerns influences and ideals rather than
persons. Our statements must be judged by candid readers who are
intelligent enough to lay our words alongside life as they are able to
observe it. If our word and their observation agree, the case is made.
It is perfectly silly to begin to damn us before it has been shown that
our statements are baseless or reckless. The first item to be considered
is the truth of what we have set forth. And that is precisely the item
which our critics choose to evade.
Readers of our articles will see at once that we are not actuated by any
kind of prejudice, except it may be a prejudice in favor of the
principles which have made our civilization. There had been observed in
this country certain streams of influence which were causing a marked
deterioration in our literature, amusements, and social conduct;
business was departing from its old-time substantial soundness; a
general letting down of standards was felt everywhere. It was not the
robust coarseness of the white man, the rude indelicacy, say, of
Shakespeare’s characters, but a nasty Orientalism which has insidiously
affected every channel of expression–and to such an extent that it was
time to challenge it. The fact that these influences are all traceable
to one racial source is a fact to be reckoned with, not by us only, but
by the intelligent people of the race in question. It is entirely
creditable to them that steps have been taken by them to remove their
protection from the more flagrant violators of American hospitality, but
there is still room to discard outworn ideas of racial superiority
maintained by economic or intellectually subversive warfare upon
Christian society.
Our work does not pretend to say the last word on the Jew in America. It
says only the word which describes his obvious present impress on the
country. When that impress is changed, the report of it can be changed.
For the present, then, the question is wholly in the Jews’ hands. If
they are as wise as they claim to be, they will labour to make Jews
American, instead of labouring to make America Jewish. The genius of the
United States of America is Christian in the broadest sense, and its
destiny is to remain Christian. This carries no sectarian meaning with
it, but relates to a basic principle which differs from other principles
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in that it provides for liberty with morality, and pledges society to a
code of relations based on fundamental Christian conceptions of human
rights and duties.
As for prejudice or hatred against persons, that is neither American nor
Christian. Our opposition is only to ideas, false ideas, which are
sapping the moral stamina of the people. These ideas proceed from easily
identified sources, they are promulgated by easily discoverable methods;
and they are controlled by mere exposure. We have simply used the method
of exposure. When people learn to identify the source and nature of the
influence swirling around them, it is sufficient. Let the American
people once understand that it is not natural degeneracy, but calculated
subversion that afflicts us, and they are safe. The explanation is the
cure.
This work was taken up without personal motives. When it reached a stage
where we believed the American people could grasp the key, we let it
rest for the time. Our enemies say that we began it for revenge and that
we laid it down in fear. Time will show that our critics are merely
dealing in evasion because they dare not tackle the main question. Time
will also show that we are better friends to the Jews’ best interests
than are those who praise them to their faces and criticize them behind
their backs.
CHAPTER XVIII
DEMOCRACY AND INDUSTRY
Perhaps no word is more overworked nowadays than the word ”democracy,”
and those who shout loudest about it, I think, as a rule, want it least.
I am always suspicious of men who speak glibly of democracy. I wonder if
they want to set up some kind of a despotism or if they want to have
somebody do for them what they ought to do for themselves. I am for the
kind of democracy that gives to each an equal chance according to his
ability. I think if we give more attention to serving our fellows we
shall have less concern with the empty forms of government and more
concern with the things to be done. Thinking of service, we shall not
bother about good feeling in industry or life; we shall not bother about
masses and classes, or closed and open shops, and such matters as have
nothing at all to do with the real business of living. We can get down
to facts. We stand in need of facts.
It is a shock when the mind awakens to the fact that not all of humanity
is human–that whole groups of people do not regard others with humane
feelings. Great efforts have been made to have this appear as the
attitude of a class, but it is really the attitude of all ”classes,” in
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so far as they are swayed by the false notion of ”classes.” Before, when
it was the constant effort of propaganda to make the people believe that
it was only the ”rich” who were without humane feelings, the opinion
became general that among the ”poor” the humane virtues flourished.
But the ”rich” and the ”poor” are both very small minorities, and you
cannot classify society under such heads. There are not enough ”rich”
and there are not enough ”poor” to serve the purpose of such
classification. Rich men have become poor without changing their
natures, and poor men have become rich, and the problem has not been
affected by it.
Between the rich and the poor is the great mass of the people who are
neither rich nor poor. A society made up exclusively of millionaires
would not be different from our present society; some of the
millionaires would have to raise wheat and bake bread and make machinery
and run trains–else they would all starve to death. Someone must do the
work. Really we have no fixed classes. We have men who will work and men
who will not. Most of the ”classes” that one reads about are purely
fictional. Take certain capitalist papers. You will be amazed by some of
the statements about the labouring class. We who have been and still are
a part of the labouring class know that the statements are untrue. Take
certain of the labour papers. You are equally amazed by some of the
statements they make about ”capitalists.” And yet on both sides there is
a grain of truth. The man who is a capitalist and nothing else, who
gambles with the fruits of other men’s labours, deserves all that is
said against him. He is in precisely the same class as the cheap gambler
who cheats workingmen out of their wages. The statements we read about
the labouring class in the capitalistic press are seldom written by
managers of great industries, but by a class of writers who are writing
what they think will please their employers. They write what they
imagine will please. Examine the labour press and you will find another
class of writers who similarly seek to tickle the prejudices which they
conceive the labouring man to have. Both kinds of writers are mere
propagandists. And propaganda that does not spread facts is
self-destructive. And it should be. You cannot preach patriotism to men
for the purpose of getting them to stand still while you rob them–and
get away with that kind of preaching very long. You cannot preach the
duty of working hard and producing plentifully, and make that a screen
for an additional profit to yourself. And neither can the worker conceal
the lack of a day’s work by a phrase.
Undoubtedly the employing class possesses facts which the employed ought
to have in order to construct sound opinions and pass fair judgments.
Undoubtedly the employed possess facts which are equally important to
the employer. It is extremely doubtful, however, if either side has all
the facts. And this is where propaganda, even if it were possible for it
to be entirely successful, is defective. It is not desirable that one
set of ideas be ”put over” on a class holding another set of ideas. What
we really need is to get all the ideas together and construct from them.
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Take, for instance, this whole matter of union labour and the right to
strike.
The only strong group of union men in the country is the group that
draws salaries from the unions. Some of them are very rich. Some of them
are interested in influencing the affairs of our large institutions of
finance. Others are so extreme in their so-called socialism that they
border on Bolshevism and anarchism–their union salaries liberating them
from the necessity of work so that they can devote their energies to
subversive propaganda. All of them enjoy a certain prestige and power
which, in the natural course of competition, they could not otherwise
have won.
If the official personnel of the labour unions were as strong, as
honest, as decent, and as plainly wise as the bulk of the men who make
up the membership, the whole movement would have taken on a different
complexion these last few years. But this official personnel, in the
main–there are notable exceptions–has not devoted itself to an
alliance with the naturally strong qualities of the workingman; it has
rather devoted itself to playing upon his weaknesses, principally upon
the weaknesses of that newly arrived portion of the population which
does not yet know what Americanism is, and which never will know if left
to the tutelage of their local union leaders.
The workingmen, except those few who have been inoculated with the
fallacious doctrine of ”the class war” and who have accepted the
philosophy that progress consists in fomenting discord in industry
(”When you get your $12 a day, don’t stop at that. Agitate for $14. When
you get your eight hours a day, don’t be a fool and grow contented;
agitate for six hours. Start something! Always start something!”), have
the plain sense which enables them to recognize that with principles
accepted and observed, conditions change. The union leaders have never
seen that. They wish conditions to remain as they are, conditions of
injustice, provocation, strikes, bad feeling, and crippled national
life. Else where would be the need for union officers? Every strike is a
new argument for them; they point to it and say, ”You see! You still
need us.”
The only true labour leader is the one who leads labour to work and to
wages, and not the leader who leads labour to strikes, sabotage, and
starvation. The union of labour which is coming to the fore in this
country is the union of all whose interests are interdependent–whose
interests are altogether dependent on the usefulness and efficiency of
the service they render.
There is a change coming. When the union of ”union leaders” disappears,
with it will go the union of blind bosses–bosses who never did a decent
thing for their employees until they were compelled. If the blind boss
was a disease, the selfish union leader was the antidote. When the union
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leader became the disease, the blind boss became the antidote. Both are
misfits, both are out of place in well-organized society. And they are
both disappearing together.
It is the blind boss whose voice is heard to-day saying, ”Now is the
time to smash labour, we’ve got them on the run.” That voice is going
down to silence with the voice that preaches ”class war.” The
producers–from the men at the drawing board to the men on the moulding
floor–have gotten together in a real union, and they will handle their
own affairs henceforth.
The exploitation of dissatisfaction is an established business to-day.
Its object is not to settle anything, nor to get anything done, but to
keep dissatisfaction in existence. And the instruments used to do this
are a whole set of false theories and promises which can never be
fulfilled as long as the earth remains what it is.
I am not opposed to labour organization. I am not opposed to any sort of
organization that makes for progress. It is organizing to limit
production–whether by employers or by workers–that matters.
The workingman himself must be on guard against some very dangerous
notions–dangerous to himself and to the welfare of the country. It is
sometimes said that the less a worker does, the more jobs he creates for
other men. This fallacy assumes that idleness is creative. Idleness
never created a job. It creates only burdens. The industrious man never
runs his fellow worker out of a job; indeed, it is the industrious man
who is the partner of the industrious manager–who creates more and more
business and therefore more and more jobs. It is a great pity that the
idea should ever have gone abroad among sensible men that by
”soldiering” on the job they help someone else. A moment’s thought will
show the weakness of such an idea. The healthy business, the business
that is always making more and more opportunities for men to earn an
honourable and ample living, is the business in which every man does a
day’s work of which he is proud. And the country that stands most
securely is the country in which men work honestly and do not play
tricks with the means of production. We cannot play fast and loose with
economic laws, because if we do they handle us in very hard ways.
The fact that a piece of work is now being done by nine men which used
to be done by ten men does not mean that the tenth man is unemployed. He
is merely not employed on that work, and the public is not carrying the
burden of his support by paying more than it ought on that work–for
after all, it is the public that pays!
An industrial concern which is wide enough awake to reorganize for
efficiency, and honest enough with the public to charge it necessary
costs and no more, is usually such an enterprising concern that it has
plenty of jobs at which to employ the tenth man. It is bound to grow,
and growth means jobs. A well-managed concern is always seeking to lower
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the labour cost to the public; and it is certain to employ more men than
the concern which loafs along and makes the public pay the cost of its
mismanagement.
The tenth man was an unnecessary cost. The ultimate consumer was paying
him. But the fact that he was unnecessary on that particular job does
not mean that he is unnecessary in the work of the world, or even in the
work of his particular shop.
The public pays for all mismanagement. More than half the trouble with
the world to-day is the ”soldiering” and dilution and cheapness and
inefficiency for which the people are paying their good money. Wherever
two men are being paid for what one can do, the people are paying double
what they ought. And it is a fact that only a little while ago in the
United States, man for man, we were not producing what we did for
several years previous to the war.
A day’s work means more than merely being ”on duty” at the shop for the
required number of hours. It means giving an equivalent in service for
the wage drawn. And when that equivalent is tampered with either
way–when the man gives more than he receives, or receives more than he
gives–it is not long before serious dislocation will be manifest.
Extend that condition throughout the country, and you have a complete
upset of business. All that industrial difficulty means is the
destruction of basic equivalents in the shop. Management must share the
blame with labour. Management has been lazy, too. Management has found
it easier to hire an additional five hundred men than to so improve its
methods that one hundred men of the old force could be released to other
work. The public was paying, and business was booming, and management
didn’t care a pin. It was no different in the office from what it was in
the shop. The law of equivalents was broken just as much by managers as
by workmen. Practically nothing of importance is secured by mere demand.
That is why strikes always fail–even though they may seem to succeed. A
strike which brings higher wages or shorter hours and passes on the
burden to the community is really unsuccessful. It only makes the
industry less able to serve–and decreases the number of jobs that it
can support. This is not to say that no strike is justified–it may draw
attention to an evil. Men can strike with justice–that they will
thereby get justice is another question. The strike for proper
conditions and just rewards is justifiable. The pity is that men should
be compelled to use the strike to get what is theirs by right. No
American ought to be compelled to strike for his rights. He ought to
receive them naturally, easily, as a matter of course. These justifiable
strikes are usually the employer’s fault. Some employers are not fit for
their jobs. The employment of men–the direction of their energies, the
arranging of their rewards in honest ratio to their production and to
the prosperity of the business–is no small job. An employer may be
unfit for his job, just as a man at the lathe may be unfit. Justifiable
strikes are a sign that the boss needs another job–one that he can
handle. The unfit employer causes more trouble than the unfit employee.
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You can change the latter to another more suitable job. But the former
must usually be left to the law of compensation. The justified strike,
then, is one that need never have been called if the employer had done
his work.
There is a second kind of strike–the strike with a concealed design. In
this kind of strike the workingmen are made the tools of some
manipulator who seeks his own ends through them. To illustrate: Here is
a great industry whose success is due to having met a public need with
efficient and skillful production. It has a record for justice. Such an
industry presents a great temptation to speculators. If they can only
gain control of it they can reap rich benefit from all the honest effort
that has been put into it. They can destroy its beneficiary wage and
profit-sharing, squeeze every last dollar out of the public, the
product, and the workingman, and reduce it to the plight of other
business concerns which are run on low principles. The motive may be the
personal greed of the speculators or they may want to change the policy
of a business because its example is embarrassing to other employers who
do not want to do what is right. The industry cannot be touched from
within, because its men have no reason to strike. So another method is
adopted. The business may keep many outside shops busy supplying it with
material. If these outside shops can be tied up, then that great
industry may be crippled.
So strikes are fomented in the outside industries. Every attempt is made
to curtail the factory’s source of supplies. If the workingmen in the
outside shops knew what the game was, they would refuse to play it, but
they don’t know; they serve as the tools of designing capitalists
without knowing it. There is one point, however, that ought to rouse the
suspicions of workingmen engaged in this kind of strike. If the strike
cannot get itself settled, no matter what either side offers to do, it
is almost positive proof that there is a third party interested in
having the strike continue. That hidden influence does not want a
settlement on any terms. If such a strike is won by the strikers, is the
lot of the workingman improved? After throwing the industry into the
hands of outside speculators, are the workmen given any better treatment
or wages?
There is a third kind of strike–the strike that is provoked by the
money interests for the purpose of giving labour a bad name. The
American workman has always had a reputation for sound judgment. He has
not allowed himself to be led away by every shouter who promised to
create the millennium out of thin air. He has had a mind of his own and
has used it. He has always recognized the fundamental truth that the
absence of reason was never made good by the presence of violence. In
his way the American workingman has won a certain prestige with his own
people and throughout the world. Public opinion has been inclined to
regard with respect his opinions and desires. But there seems to be a
determined effort to fasten the Bolshevik stain on American Labour by
inciting it to such impossible attitudes and such wholly unheard-of
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actions as shall change public sentiment from respect to criticism.
Merely avoiding strikes, however, does not promote industry. We may say
to the workingman:
”You have a grievance, but the strike is no remedy–it only makes the
situation worse whether you win or lose.”
Then the workingman may admit this to be true and refrain from striking.
Does that settle anything?
No! If the worker abandons strikes as an unworthy means of bringing
about desirable conditions, it simply means that employers must get busy
on their own initiative and correct defective conditions.
The experience of the Ford industries with the workingman has been
entirely satisfactory, both in the United States and abroad. We have no
antagonism to unions, but we participate in no arrangements with either
employee or employer organizations. The wages paid are always higher
than any reasonable union could think of demanding and the hours of work
are always shorter. There is nothing that a union membership could do
for our people. Some of them may belong to unions, probably the majority
do not. We do not know and make no attempt to find out, for it is a
matter of not the slightest concern to us. We respect the unions,
sympathize with their good aims and denounce their bad ones. In turn I
think that they give us respect, for there has never been any
authoritative attempt to come between the men and the management in our
plants. Of course radical agitators have tried to stir up trouble now
and again, but the men have mostly regarded them simply as human
oddities and their interest in them has been the same sort of interest
that they would have in a four-legged man.
In England we did meet the trades union question squarely in our
Manchester plant. The workmen of Manchester are mostly unionized, and
the usual English union restrictions upon output prevail. We took over a
body plant in which were a number of union carpenters. At once the union
officers asked to see our executives and arrange terms. We deal only
with our own employees and never with outside representatives, so our
people refused to see the union officials. Thereupon they called the
carpenters out on strike. The carpenters would not strike and were
expelled from the union. Then the expelled men brought suit against the
union for their share of the benefit fund. I do not know how the
litigation turned out, but that was the end of interference by trades
union officers with our operations in England.
We make no attempt to coddle the people who work with us. It is
absolutely a give-and-take relation. During the period in which we
largely increased wages we did have a considerable supervisory force.
The home life of the men was investigated and an effort was made to find
out what they did with their wages. Perhaps at the time it was
necessary; it gave us valuable information. But it would not do at all
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as a permanent affair and it has been abandoned.
We do not believe in the ”glad hand,” or the professionalized ”personal
touch,” or ”human element.” It is too late in the day for that sort of
thing. Men want something more than a worthy sentiment. Social
conditions are not made out of words. They are the net result of the
daily relations between man and man. The best social spirit is evidenced
by some act which costs the management something and which benefits all.
That is the only way to prove good intentions and win respect.
Propaganda, bulletins, lectures–they are nothing. It is the right act
sincerely done that counts.
A great business is really too big to be human. It grows so large as to
supplant the personality of the man. In a big business the employer,
like the employee, is lost in the mass. Together they have created a
great productive organization which sends out articles that the world
buys and pays for in return money that provides a livelihood for
everyone in the business. The business itself becomes the big thing.
There is something sacred about a big business which provides a living
for hundreds and thousands of families. When one looks about at the
babies coming into the world, at the boys and girls going to school, at
the young workingmen who, on the strength of their jobs, are marrying
and setting up for themselves, at the thousands of homes that are being
paid for on installments out of the earnings of men–when one looks at a
great productive organization that is enabling all these things to be
done, then the continuance of that business becomes a holy trust. It
becomes greater and more important than the individuals.
The employer is but a man like his employees and is subject to all the
limitations of humanity. He is justified in holding his job only as he
can fill it. If he can steer the business straight, if his men can trust
him to run his end of the work properly and without endangering their
security, then he is filling his place. Otherwise he is no more fit for
his position than would be an infant. The employer, like everyone else,
is to be judged solely by his ability. He may be but a name to the
men–a name on a signboard. But there is the business–it is more than a
name. It produces the living–and a living is a pretty tangible thing.
The business is a reality. It does things. It is a going concern. The
evidence of its fitness is that the pay envelopes keep coming.
You can hardly have too much harmony in business. But you can go too far
in picking men because they harmonize. You can have so much harmony that
there will not be enough of the thrust and counterthrust which is
life–enough of the competition which means effort and progress. It is
one thing for an organization to be working harmoniously toward one
object, but it is another thing for an organization to work harmoniously
with each individual unit of itself. Some organizations use up so much
energy and time maintaining a feeling of harmony that they have no force
left to work for the object for which the organization was created. The
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organization is secondary to the object. The only harmonious
organization that is worth anything is an organization in which all the
members are bent on the one main purpose–to get along toward the
objective. A common purpose, honestly believed in, sincerely
desired–that is the great harmonizing principle.
I pity the poor fellow who is so soft and flabby that he must always
have ”an atmosphere of good feeling” around him before he can do his
work. There are such men. And in the end, unless they obtain enough
mental and moral hardiness to lift them out of their soft reliance on
”feeling,” they are failures. Not only are they business failures; they
are character failures also; it is as if their bones never attained a
sufficient degree of hardness to enable them to stand on their own feet.
There is altogether too much reliance on good feeling in our business
organizations. People have too great a fondness for working with the
people they like. In the end it spoils a good many valuable qualities.
Do not misunderstand me; when I use the term ”good feeling” I mean that
habit of making one’s personal likes and dislikes the sole standard of
judgment. Suppose you do not like a man. Is that anything against him?
It may be something against you. What have your likes or dislikes to do
with the facts? Every man of common sense knows that there are men whom
he dislikes, who are really more capable than he is himself.
And taking all this out of the shop and into the broader fields, it is
not necessary for the rich to love the poor or the poor to love the
rich. It is not necessary for the employer to love the employee or for
the employee to love the employer. What is necessary is that each should
try to do justice to the other according to his deserts. That is real
democracy and not the question of who ought to own the bricks and the
mortar and the furnaces and the mills. And democracy has nothing to do
with the question, ”Who ought to be boss?”
That is very much like asking: ”Who ought to be the tenor in the
quartet?” Obviously, the man who can sing tenor. You could not have
deposed Caruso. Suppose some theory of musical democracy had consigned
Caruso to the musical proletariat. Would that have reared another tenor
to take his place? Or would Caruso’s gifts have still remained his own?
CHAPTER XIX
WHAT WE MAY EXPECT
We are–unless I do not read the signs aright–in the midst of a change.
It is going on all about us, slowly and scarcely observed, but with a
firm surety. We are gradually learning to relate cause and effect. A
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great deal of that which we call disturbance–a great deal of the upset
in what have seemed to be established institutions–is really but the
surface indication of something approaching a regeneration. The public
point of view is changing, and we really need only a somewhat different
point of view to make the very bad system of the past into a very good
system of the future. We are displacing that peculiar virtue which used
to be admired as hard-headedness, and which was really only
wooden-headedness, with intelligence, and also we are getting rid of
mushy sentimentalism. The first confused hardness with progress; the
second confused softness with progress. We are getting a better view of
the realities and are beginning to know that we have already in the
world all things needful for the fullest kind of a life and that we
shall use them better once we learn what they are and what they mean.
Whatever is wrong–and we all know that much is wrong–can be righted by
a clear definition of the wrongness. We have been looking so much at one
another, at what one has and another lacks, that we have made a personal
affair out of something that is too big for personalities. To be sure,
human nature enters largely into our economic problems. Selfishness
exists, and doubtless it colours all the competitive activities of life.
If selfishness were the characteristic of any one class it might be
easily dealt with, but it is in human fibre everywhere. And greed
exists. And envy exists. And jealousy exists.
But as the struggle for mere existence grows less–and it is less than
it used to be, although the sense of uncertainty may have increased–we
have an opportunity to release some of the finer motives. We think less
of the frills of civilization as we grow used to them. Progress, as the
world has thus far known it, is accompanied by a great increase in the
things of life. There is more gear, more wrought material, in the
average American backyard than in the whole domain of an African king.
The average American boy has more paraphernalia around him than a whole
Eskimo community. The utensils of kitchen, dining room, bedroom, and
coal cellar make a list that would have staggered the most luxurious
potentate of five hundred years ago. The increase in the impedimenta of
life only marks a stage. We are like the Indian who comes into town with
all his money and buys everything he sees. There is no adequate
realization of the large proportion of the labour and material of
industry that is used in furnishing the world with its trumpery and
trinkets, which are made only to be sold, and are bought merely to be
owned–that perform no service in the world and are at last mere rubbish
as at first they were mere waste. Humanity is advancing out of its
trinket-making stage, and industry is coming down to meet the world’s
needs, and thus we may expect further advancement toward that life which
many now see, but which the present ”good enough” stage hinders our
attaining.
And we are growing out of this worship of material possessions. It is no
longer a distinction to be rich. As a matter of fact, to be rich is no
longer a common ambition. People do not care for money as money, as they
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once did. Certainly they do not stand in awe of it, nor of him who
possesses it. What we accumulate by way of useless surplus does us no
honour.
It takes only a moment’s thought to see that as far as individual
personal advantage is concerned, vast accumulations of money mean
nothing. A human being is a human being and is nourished by the same
amount and quality of food, is warmed by the same weight of clothing,
whether he be rich or poor. And no one can inhabit more than one room at
a time.
But if one has visions of service, if one has vast plans which no
ordinary resources could possibly realize, if one has a life ambition to
make the industrial desert bloom like the rose, and the work-a-day life
suddenly blossom into fresh and enthusiastic human motives of higher
character and efficiency, then one sees in large sums of money what the
farmer sees in his seed corn–the beginning of new and richer harvests
whose benefits can no more be selfishly confined than can the sun’s
rays.
There are two fools in this world. One is the millionaire who thinks
that by hoarding money he can somehow accumulate real power, and the
other is the penniless reformer who thinks that if only he can take the
money from one class and give it to another, all the world’s ills will
be cured. They are both on the wrong track. They might as well try to
corner all the checkers or all the dominoes of the world under the
delusion that they are thereby cornering great quantities of skill. Some
of the most successful money-makers of our times have never added one
pennyworth to the wealth of men. Does a card player add to the wealth of
the world?
If we all created wealth up to the limits, the easy limits, of our
creative capacity, then it would simply be a case of there being enough
for everybody, and everybody getting enough. Any real scarcity of the
necessaries of life in the world–not a fictitious scarcity caused by
the lack of clinking metallic disks in one’s purse–is due only to lack
of production. And lack of production is due only too often to lack of
knowledge of how and what to produce.
This much we must believe as a starting point:
That the earth produces, or is capable of producing, enough to give
decent sustenance to everyone–not of food alone, but of everything else
we need. For everything is produced from the earth.
That it is possible for labour, production, distribution, and reward to
be so organized as to make certain that those who contribute shall
receive shares determined by an exact justice.
165
That regardless of the frailties of human nature, our economic system
can be so adjusted that selfishness, although perhaps not abolished, can
be robbed of power to work serious economic injustice.
The business of life is easy or hard according to the skill or the lack
of skill displayed in production and distribution. It has been thought
that business existed for profit. That is wrong. Business exists for
service. It is a profession, and must have recognized professional
ethics, to violate which declasses a man. Business needs more of the
professional spirit. The professional spirit seeks professional
integrity, from pride, not from compulsion. The professional spirit
detects its own violations and penalizes them. Business will some day
become clean. A machine that stops every little while is an imperfect
machine, and its imperfection is within itself. A body that falls sick
every little while is a diseased body, and its disease is within itself.
So with business. Its faults, many of them purely the faults of the
moral constitution of business, clog its progress and make it sick every
little while. Some day the ethics of business will be universally
recognized, and in that day business will be seen to be the oldest and
most useful of all the professions.
All that the Ford industries have done–all that I have done–is to
endeavour to evidence by works that service comes before profit and that
the sort of business which makes the world better for its presence is a
noble profession. Often it has come to me that what is regarded as the
somewhat remarkable progression of our enterprises–I will not say
”success,” for that word is an epitaph, and we are just starting–is due
to some accident; and that the methods which we have used, while well
enough in their way, fit only the making of our particular products and
would not do at all in any other line of business or indeed for any
products or personalities other than our own.
It used to be taken for granted that our theories and our methods were
fundamentally unsound. That is because they were not understood. Events
have killed that kind of comment, but there remains a wholly sincere
belief that what we have done could not be done by any other
company–that we have been touched by a wand, that neither we nor any
one else could make shoes, or hats, or sewing machines, or watches, or
typewriters, or any other necessity after the manner in which we make
automobiles and tractors. And that if only we ventured into other fields
we should right quickly discover our errors. I do not agree with any of
this. Nothing has come out of the air. The foregoing pages should prove
that. We have nothing that others might not have. We have had no good
fortune except that which always attends any one who puts his best into
his work. There was nothing that could be called ”favorable” about our
166
beginning. We began with almost nothing. What we have, we earned, and we
earned it by unremitting labour and faith in a principle. We took what
was a luxury and turned it into a necessity and without trick or
subterfuge. When we began to make our present motor car the country had
few good roads, gasoline was scarce, and the idea was firmly implanted
in the public mind that an automobile was at the best a rich man’s toy.
Our only advantage was lack of precedent.
We began to manufacture according to a creed–a creed which was at that
time unknown in business. The new is always thought odd, and some of us
are so constituted that we can never get over thinking that anything
which is new must be odd and probably queer. The mechanical working out
of our creed is constantly changing. We are continually finding new and
better ways of putting it into practice, but we have not found it
necessary to alter the principles, and I cannot imagine how it might
ever be necessary to alter them, because I hold that they are absolutely
universal and must lead to a better and wider life for all.
If I did not think so I would not keep working–for the money that I
make is inconsequent. Money is useful only as it serves to forward by
practical example the principle that business is justified only as it
serves, that it must always give more to the community than it takes
away, and that unless everybody benefits by the existence of a business
then that business should not exist. I have proved this with automobiles
and tractors. I intend to prove it with railways and public-service
corporations–not for my personal satisfaction and not for the money
that may be earned. (It is perfectly impossible, applying these
principles, to avoid making a much larger profit than if profit were the
main object.) I want to prove it so that all of us may have more, and
that all of us may live better by increasing the service rendered by all
businesses. Poverty cannot be abolished by formula; it can be abolished
only by hard and intelligent work. We are, in effect, an experimental
station to prove a principle. That we do make money is only further
proof that we are right. For that is a species of argument that
establishes itself without words.
In the first chapter was set forth the creed. Let me repeat it in the
light of the work that has been done under it–for it is at the basis of
all our work:
(1) An absence of fear of the future or of veneration for the past. One
who fears the future, who fears failure, limits his activities. Failure
is only the opportunity more intelligently to begin again. There is no
disgrace in honest failure; there is disgrace in fearing to fail. What
is past is useful only as it suggests ways and means for progress.
(2) A disregard of competition. Whoever does a thing best ought to be
the one to do it. It is criminal to try to get business away from
another man–criminal because one is then trying to lower for personal
gain the condition of one’s fellow-men, to rule by force instead of by
167
intelligence.
(3) The putting of service before profit. Without a profit, business
cannot extend. There is nothing inherently wrong about making a profit.
Well-conducted business enterprises cannot fail to return a profit but
profit must and inevitably will come as a reward for good service. It
cannot be the basis–it must be the result of service.
(4) Manufacturing is not buying low and selling high. It is the process
of buying materials fairly and, with the smallest possible addition of
cost, transforming those materials into a consumable product and
distributing it to the consumer. Gambling, speculating, and sharp
dealing tend only to clog this progression.
We must have production, but it is the spirit behind it that counts
most. That kind of production which is a service inevitably follows a
real desire to be of service. The various wholly artificial rules set up
for finance and industry and which pass as ”laws” break down with such
frequency as to prove that they are not even good guesses. The basis of
all economic reasoning is the earth and its products. To make the yield
of the earth, in all its forms, large enough and dependable enough to
serve as the basis for real life–the life which is more than eating and
sleeping–is the highest service. That is the real foundation for an
economic system. We can make things–the problem of production has been
solved brilliantly. We can make any number of different sort of things
by the millions. The material mode of our life is splendidly provided
for. There are enough processes and improvements now pigeonholed and
awaiting application to bring the physical side of life to almost
millennial completeness. But we are too wrapped up in the things we are
doing–we are not enough concerned with the reasons why we do them. Our
whole competitive system, our whole creative expression, all the play of
our faculties seem to be centred around material production and its
by-products of success and wealth.
There is, for instance, a feeling that personal or group benefit can be
had at the expense of other persons or groups. There is nothing to be
gained by crushing any one. If the farmer’s bloc should crush the
manufacturers would the farmers be better off? If the manufacturer’s
bloc should crush the farmers, would the manufacturers be better off?
Could Capital gain by crushing Labour? Or Labour by crushing Capital? Or
does a man in business gain by crushing a competitor? No, destructive
competition benefits no one. The kind of competition which results in
the defeat of the many and the overlordship of the ruthless few must go.
Destructive competition lacks the qualities out of which progress comes.
Progress comes from a generous form of rivalry. Bad competition is
personal. It works for the aggrandizement of some individual or group.
It is a sort of warfare. It is inspired by a desire to ”get” someone. It
is wholly selfish. That is to say, its motive is not pride in the
168
product, nor a desire to excel in service, nor yet a wholesome ambition
to approach to scientific methods of production. It is moved simply by
the desire to crowd out others and monopolize the market for the sake of
the money returns. That being accomplished, it always substitutes a
product of inferior quality.
Freeing ourselves from the petty sort of destructive competition frees
us from many set notions. We are too closely tied to old methods and
single, one-way uses. We need more mobility. We have been using
certain things just one way, we have been sending certain goods
through only one channel–and when that use is slack, or that channel
is stopped, business stops, too, and all the sorry consequences of
”depression” set in. Take corn, for example. There are millions upon
millions of bushels of corn stored in the United States with no
visible outlet. A certain amount of corn is used as food for man and
beast, but not all of it. In pre-Prohibition days a certain amount of
corn went into the making of liquor, which was not a very good use for
good corn. But through a long course of years corn followed those two
channels, and when one of them stopped the stocks of corn began to
pile up. It is the money fiction that usually retards the movement of
stocks, but even if money were plentiful we could not possibly consume
the stores of food which we sometimes possess.
If foodstuffs become too plentiful to be consumed as food, why not find
other uses for them? Why use corn only for hogs and distilleries? Why
sit down and bemoan the terrible disaster that has befallen the corn
market? Is there no use for corn besides the making of pork or the
making of whisky? Surely there must be. There should be so many uses for
corn that only the important uses could ever be fully served; there
ought always be enough channels open to permit corn to be used without
waste.
Once upon a time the farmers burned corn as fuel–corn was plentiful and
coal was scarce. That was a crude way to dispose of corn, but it
contained the germ of an idea. There is fuel in corn; oil and fuel
alcohol are obtainable from corn, and it is high time that someone was
opening up this new use so that the stored-up corn crops may be moved.
Why have only one string to our bow? Why not two? If one breaks, there
is the other. If the hog business slackens, why should not the farmer
turn his corn into tractor fuel?
We need more diversity all round. The four-track system everywhere would
not be a bad idea. We have a single-track money system. It is a mighty
fine system for those who own it. It is a perfect system for the
interest-collecting, credit-controlling financiers who literally own the
commodity called Money and who literally own the machinery by which
money is made and used. Let them keep their system if they like it. But
the people are finding out that it is a poor system for what we call
169
”hard times” because it ties up the line and stops traffic. If there are
special protections for the interests, there ought also to be special
protections for the plain people. Diversity of outlet, of use, and of
financial enablement, are the strongest defenses we can have against
economic emergencies.
It is likewise with Labour. There surely ought to be flying squadrons of
young men who would be available for emergency conditions in harvest
field, mine, shop, or railroad. If the fires of a hundred industries
threaten to go out for lack of coal, and one million men are menaced by
unemployment, it would seem both good business and good humanity for a
sufficient number of men to volunteer for the mines and the railroads.
There is always something to be done in this world, and only ourselves
to do it. The whole world may be idle, and in the factory sense there
may be ”nothing to do.” There may be nothing to do in this place or
that, but there is always something to do. It is this fact which should
urge us to such an organization of ourselves that this ”something to be
done” may get done, and unemployment reduced to a minimum.
Every advance begins in a small way and with the individual. The mass
can be no better than the sum of the individuals. Advancement begins
within the man himself; when he advances from half-interest to strength
of purpose; when he advances from hesitancy to decisive directness; when
he advances from immaturity to maturity of judgment; when he advances
from apprenticeship to mastery; when he advances from a mere dilettante
at labour to a worker who finds a genuine joy in work; when he advances
from an eye-server to one who can be entrusted to do his work without
oversight and without prodding–why, then the world advances! The
advance is not easy. We live in flabby times when men are being taught
that everything ought to be easy. Work that amounts to anything will
never be easy. And the higher you go in the scale of responsibility, the
harder becomes the job. Ease has its place, of course. Every man who
works ought to have sufficient leisure. The man who works hard should
have his easy chair, his comfortable fireside, his pleasant
surroundings. These are his by right. But no one deserves ease until
after his work is done. It will never be possible to put upholstered
ease into work. Some work is needlessly hard. It can be lightened by
proper management. Every device ought to be employed to leave a man free
to do a man’s work. Flesh and blood should not be made to bear burdens
that steel can bear. But even when the best is done, work still remains
work, and any man who puts himself into his job will feel that it is
work.
And there cannot be much picking and choosing. The appointed task may
be
less than was expected. A man’s real work is not always what he would
have chosen to do. A man’s real work is what he is chosen to do. Just
now there are more menial jobs than there will be in the future; and as
170
long as there are menial jobs, someone will have to do them; but there
is no reason why a man should be penalized because his job is menial.
There is one thing that can be said about menial jobs that cannot be
said about a great many so-called more responsible jobs, and that is,
they are useful and they are respectable and they are honest.
The time has come when drudgery must be taken out of labour. It is not
work that men object to, but the element of drudgery. We must drive out
drudgery wherever we find it. We shall never be wholly civilized until
we remove the treadmill from the daily job. Invention is doing this in
some degree now. We have succeeded to a very great extent in relieving
men of the heavier and more onerous jobs that used to sap their
strength, but even when lightening the heavier labour we have not yet
succeeded in removing monotony. That is another field that beckons
us–the abolition of monotony, and in trying to accomplish that we shall
doubtless discover other changes that will have to be made in our
system.
The opportunity to work is now greater than ever it was. The opportunity
to advance is greater. It is true that the young man who enters industry
to-day enters a very different system from that in which the young man
of twenty-five years ago began his career. The system has been tightened
up; there is less play or friction in it; fewer matters are left to the
haphazard will of the individual; the modern worker finds himself part
of an organization which apparently leaves him little initiative. Yet,
with all this, it is not true that ”men are mere machines.” It is not
true that opportunity has been lost in organization. If the young man
will liberate himself from these ideas and regard the system as it is,
he will find that what he thought was a barrier is really an aid.
Factory organization is not a device to prevent the expansion of
ability, but a device to reduce the waste and losses due to mediocrity.
It is not a device to hinder the ambitious, clear-headed man from doing
his best, but a device to prevent the don’t-care sort of individual from
doing his worst. That is to say, when laziness, carelessness,
slothfulness, and lack-interest are allowed to have their own way,
everybody suffers. The factory cannot prosper and therefore cannot pay
living wages. When an organization makes it necessary for the don’t-care
class to do better than they naturally would, it is for their
benefit–they are better physically, mentally, and financially. What
wages should we be able to pay if we trusted a large don’t-care class to
their own methods and gait of production?
If the factory system which brought mediocrity up to a higher standard
operated also to keep ability down to a lower standard–it would be a
very bad system, a very bad system indeed. But a system, even a perfect
one, must have able individuals to operate it. No system operates
itself. And the modern system needs more brains for its operation than
171
did the old. More brains are needed to-day than ever before, although
perhaps they are not needed in the same place as they once were. It is
just like power: formerly every machine was run by foot power; the power
was right at the machine. But nowadays we have moved the power
back–concentrated it in the power-house. Thus also we have made it
unnecessary for the highest types of mental ability to be engaged in
every operation in the factory. The better brains are in the mental
power-plant.
Every business that is growing is at the same time creating new places
for capable men. It cannot help but do so. This does not mean that new
openings come every day and in groups. Not at all. They come only after
hard work; it is the fellow who can stand the gaff of routine and still
keep himself alive and alert who finally gets into direction. It is not
sensational brilliance that one seeks in business, but sound,
substantial dependability. Big enterprises of necessity move slowly and
cautiously. The young man with ambition ought to take a long look ahead
and leave an ample margin of time for things to happen.
A great many things are going to change. We shall learn to be masters
rather than servants of Nature. With all our fancied skill we still
depend largely on natural resources and think that they cannot be
displaced. We dig coal and ore and cut down trees. We use the coal and
the ore and they are gone; the trees cannot be replaced within a
lifetime. We shall some day harness the heat that is all about us and no
longer depend on coal–we may now create heat through electricity
generated by water power. We shall improve on that method. As chemistry
advances I feel quite certain that a method will be found to transform
growing things into substances that will endure better than the
metals–we have scarcely touched the uses of cotton. Better wood can be
made than is grown. The spirit of true service will create for us. We
have only each of us to do our parts sincerely.
Everything is possible ... ”faith is the substance of things hoped for,
the evidence of things not seen.”
THE BOOK ENDS
INDEX
Absentees discharged,
Accidents, safeguarding against; causes of
Advancement, personal
Advertisement, first, of Ford Motor Co.
Agents,
Agriculture, a primary function
172
Ainsley, Charles
Alexander, Henry, drives Ford car to top of Ben Nevis, 4,600 feet,
in 1911
Antecedents, a man’s, of no interest in hiring at Ford factory
Assembly of a Ford car; first experiment in a moving assembly line,
April 1, 1913; results of the experiment
Automobile, public’s first attitude toward
Automobile business, bad methods of; in its beginnings
Bankers play too great a part in business; in railroads
Banking,
Bedridden men at work,
Benz car on exhibition at Macy’s in 1885,
Birds, Mr. Ford’s fondness for
Blind men can work,
Bolshevism,
Bonuses– See ”Profit-Sharing”
Borrowing money; what it would have meant to Ford Motor Co. in 1920
British Board of Agriculture,
British Cabinet and Fordson tractors,
Burroughs, John
Business, monopoly and profiteering bad for; function of
Buying for immediate needs only,
Cadillac Company,
Capital,
Capitalist newspapers,
Capitalists,
Cash balance, large
Charity, professional
City life,
”Classes” mostly fictional,
Classification of work at Ford plants,
Cleanliness of factory,
Coal used in Ford plants from Ford mines,
Coke ovens at River Rouge plant,
Collier, Colonel D. C.
Competition,
Consumption varies according to price and quality,
Convict labour,
Cooper, Tom
Cooperative farming,
Cork, Ireland, Fordson tractor plant
Corn, potential uses of
Costs of production, records of; prices force down; high wages
contribute to low
Country, living in
Courtney, F. S.
Creative work,
Creed, industrial, Mr. Ford’s
Cripples can work,
Cross, John E.
173
Dalby, Prof. W. E.,
Deaf and dumb men at work,
Dearborn Independent ,
Dearborn plant,
Democracy,
Detroit Automobile Co.,
Detroit General Hospital, now Ford Hospital,
Detroit, Toledo and Ironton Railway, purchased by Ford Motor Co.,
in March, 1921,
Development, opportunity for, in U. S.,
Diamond Manufacturing Co. fire,
Discipline at Ford plants,
”Dividends, abolish, rather than lower wages,”
Dividends, small, Ford policy of,
Doctors,
Dollar, the fluctuating,
Drudgery,
Eagle Boats,
Economy,
Edison, Thomas A.,
Educated man, an; definition of,
Education, Mr. Ford’s ideas on,
Educational Department,
Electricity generated at Ford plants,
”Employees, all, are really partners,”
Employment Department,
Equal, all men are not,
Experience, lack of, no bar to employment,
Experiments, no record of, kept at Ford factories,
”Experts,” no, at Ford plants,
Factory, Ford, growth of,
Factory organization, function of,
Failure, habit of,
Farming, lack of knowledge in, no conflict between, and industry,
future development in,
Farming with tractors,
Fear,
Federal Reserve System,
Fighting, a cause for immediate discharge,
Finance,
Financial crisis in 1921, how Ford Motor Co. met,
Financial system at present inadequate,
Firestone, Harvey S.,
Flat Rock plant,
Floor space for workers,
Flour-milling,
Foodstuffs, potential uses of,
Ford car–
174
the first, No. 5,000,000,
the second, introduction of,
in England in 1903,
about 5,000 parts in,
sales and production– See ”Sales”
Ford, Henry–
Born at Dearborn, Mich., July 30, 1863,
mechanically inclined,
leaves school at seventeen, becomes apprentice at Drydock Engine
Works,
watch repairer,
works with local representative of Westinghouse Co. as expert in
setting up and repairing road engines,
builds a steam tractor in his workshop,
reads of the ”silent gas engine” in the World of Science ,
in 1887 builds one on the Otto four-cycle model,
father gives him forty acres of timber land,
marriage,
in 1890 begins work on double-cylinder engine,
leaves farm and works as engineer and machinist with the Detroit
Electric Co.,
rents house in Detroit and sets up workshop in back yard,
in 1892 completes first motor car,
first road test in 1893,
builds second motor car,
quits job with Electric Co. August 15, 1899, and goes into
automobile business,
organization of Detroit Automobile Co.,
resigns from, in 1902,
rents shop to continue experiments at 81 Park Place, Detroit,
beats Alexander Winton in race,
early reflections on business,
in 1903 builds, with Tom Cooper, two cars, the ”999” and the
”Arrow” for speed,
forms the Ford Motor Co.,
buys controlling share in 1906,
builds ”Model A,”
builds ”Model B” and ”Model C,”
makes a record in race over ice in the ”Arrow,”
builds first real manufacturing plant, in May, 1908,
assembles 311 cars in six workings days,
in June, 1908, assembles one hundred cars in one day,
in 1909, decides to manufacture only ”Model T,” painted black,
buys sixty acres of land for plant at Highland Park, outside of
Detroit,
how he met the financial crises of 1921,
buys Detroit, Toledo & Ironton Ry., March, 1921,
”Ford doesn’t use the Ford,”
Ford, Edsel,
Ford Hospital,
175
Ford Motor Co., organized 1903,
Henry Ford buys controlling share in 1906,
how it met financial crisis in 1921,
thirty-five branches of, in U. S.
”Ford, you can dissect it, but you cannot kill it,”
Fordson tractor,
prices,
genesis and development of,
cost of farming with,
5,000 sent to England in 1917-18,
Foreign trade,
Gas from coke ovens at River Rouge plant utilized,
”Gold is not wealth,”
”Good feeling” in working not essential, though desirable,
Government, the function of,
Greaves, R. N.,
Greed vs. service,
Greenhall, Gilbert,
Grosse Point track,
”Habit conduces to a certain inertia,”
Highland Park plant,
Hobbs, Robert W.,
Hospital, Ford,
Hough, Judge, renders decision against Ford Motor Co. in Selden
Patent suit,
Hours of labour per day reduced from nine to eight in January, 1914,
”Human, a great business is too big to be,”
Human element in business,
Ideas, old and new,
Improvements in products,
Interstate Commerce Commission,
Inventory, cutting down, by improved freight service,
Investment, interest on, not properly chargeable to operating expenses,
Jacobs, Edmund,
”Jail, men in, ought to be able to support their families,”
Jewish question, studies in the,
Jobs, menial,
”John R. Street,”
Labour,
the economic fundamental, and Capital, potential uses of,
Labour leaders,
Labour newspapers,
Labour turnover,
”Lawyers, like bankers, know absolutely nothing about business,”
Legislation, the function of,
176
Licensed Association,
”Life is not a location, but a journey,”
Light for working,
Loss, taking a; in times of business depression,
Manchester, Eng.,
Ford plant at,
strike at,
Machinery, its place in life,
Manufacture, a primary function,
Medical Department,
Mexico,
Milner, Lord,
Models–
”A,”
”B,”
”C,”
”F,”
”K,”
”N,”
”R,”
”S,”
”T,”
changing, not a Ford policy,
Money,
chasing,
present system of,
what it is worth,
invested in a business not chargeable to it,
fluctuating value of,
is not wealth,
Monopoly, bad for business,
Monotonous work,
Motion, waste, eliminating,
Northville, Mich., plant, combination farm and factory,
Oldfteld, Barney,
Opportunity for young men of today,
Organization, excess, and red tape,
Overman, Henry,
Otto engine,
Overhead charge per car, cut from $146 to $93,
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